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1.
ACTIVITY
The International Olympic Committee (IOC), domiciled in
Lausanne, Switzerland, is an international non-governmental
non-profit organization in the form of an association. Its
registered office is located at Château de Vidy. The mission
of the IOC is to lead the Olympic Movement in accordance
with the Olympic Charter. The Olympic Movement
encompasses organizations, athletes and other persons
who agree to be guided by the Olympic Charter, including,
in addition to the IOC, the International Sports Federations
(IFs), the National Olympic Committees (NOCs) including the
United States of America Olympic Committee (USOC) and
the Organizing Committees of the Olympic Games (OCOGs).
The Olympic Movement’s revenues are largely generated
from royalties on licensing television broadcasting rights for
Olympic Games, as well as revenues from the commercial
exploitation of the Olympic symbol and Olympic emblems.
The allocation of the revenues between the organizations
making up the Olympic Movement is generally contractually
based in respect of the IOC, the USOC and the OCOGs,
and in respect of the IFs, the NOCs and the OS negotiated
on an ongoing basis with the IOC.
In addition to the activities of the IOC, these combined
financial statements include the activities of the following
organizations and programmes:
The Olympic Museum (OM), a foundation governed by the
provisions of the Swiss Civil Code. It has been entrusted
by the IOC with the task of depicting the history and
development of the Olympic Movement and to associate
the movement with art and culture for specialists and the
public at large worldwide.
The Olympic Foundation (OF), a foundation governed
by the provisions of the Swiss Civil Code. It has been
entrusted by the IOC to give support to the activities of
the Olympic Movement notably in the areas of culture,
education and sports.
The Olympic Solidarity (OS), a programme developed
jointly by the IOC and the National Olympic Committees
(NOCs). Its purpose is to assist the officially recognized
NOCs, especially those most in need, to fulfil their mission
and in making known the ideals of the Olympic Movement.
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The IOC Television and Marketing Services SA (IOCTMS),
a company owned by the OF which manages the IOC’s
worldwide sponsorship programme, all its other marketing
activities and activities related to broadcasting rights and
new media, a fully owned subsidiary of the OF.
The Olympic Program (TOP), the IOC’s worldwide
sponsorship programme, which is managed by IOCTMS.
The Olympic Broadcasting Services SA (OBS SA), a
company that shall supply all services relating to the
establishment and management of the Host Broadcasting
function of the Olympic Games, and in which the OF holds
a 99% shareholding. At 31 December 2008, the value of
the minority interest amounted to USD 38 739 (USD 0 at
31 December 2007).
The Olympic Broadcasting Services SL (OBS SL), a
company that provide services to OBS SA, fully owned
subsidiary of OBS SA.
The Olympic Broadcasting Services Vancouver LTD
(OBSV), a company that provide services to OBS SA,
for the purpose of the 2010 Olympic Games, a fully
owned subsidiary of OBS SA.
The activities of the OM, the OF, the OS, the IOCTMS, the
TOP Programme, the OBS SA, the OBS SL and OBSV have
been combined with those of the IOC (together, the IOC or
the Group) on the basis of the fact that the latter has a
majority shareholding or control of the Boards of each
organization and of each programme.
A 33.3% investment in La Maison du Sport International SA,
Lausanne, held by the OF, is accounted for under the equity
method of accounting.
2.
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
A. Basis of presentation
The combined financial statements are prepared in
accordance with and comply with International Financial
Reporting Standards (IFRS). The significant accounting
policies are described below and have been consistently
applied to the years presented, unless otherwise stated.
The financial statements are prepared under the historical
cost convention except for financial assets at fair value
through profit or loss and derivative financial instruments
which are shown at fair value. Transactions and balances
among the combined organizations and programmes have
been eliminated.
The preparation of financial statements in conformity with
IFRS requires the use of accounting estimates and also
requires the exercise of judgment in the application of the
accounting policies. In particular, significant assumptions
are used in the calculation of the defined benefit obligations
(note 12).
These combined financial statements have been approved
by the Executive Committee of the IOC on 16 June 2009.
The amounts shown in these combined financial statements
are presented in US dollars, in view of the international
nature of the IOC’s operations and due to the majority of
its revenues being earned in that currency.
The television broadcasting revenues are received in USD,
EUR and AUD. The related distributions are paid in USD
and EUR.
Restricted assets represent advances received on television
rights royalties and guarantee deposits made by OCOGs.
Such funds are held in bank deposit accounts or in trust.
Amendments to published standards coming into
effect in 2008
IFRIC 14, ‘IAS 19 – The limit of a defined benefit asset,
minimum funding requirements and their interaction’,
provides guidance on assessing the limit in IAS 19 on the
amount of the surplus that can be recognized as an asset.
It also explains how the pension asset or liability may be
affected by a statutory or contractual minimum funding
requirement. This interpretation does not have any impact
on the IOC’s financial statements.
Other standards, amendments or interpretations becoming
effective in 2008 are not relevant for the IOC. The IOC has
not early adopted any other standards, amendments or
interpretations.
Standards, amendments and interpretations not yet
effective and which have not been early adopted
Certain new standards, amendments and interpretations to
existing standards have been published that are mandatory
to the IOC’s accounting periods beginning on or after
1 January 2009 or later periods but which the IOC has
not early adopted. The IOC currently believes that only the
following will have an impact on its combined financial
statements:
IAS 1 (amendment) – Presentation of financial statements
(effective from 1 January 2009). It primarily affects the
presentation of owner changes in equity and of
comprehensive income. It does not change the recognition,
measurement or disclosures of specific transactions and
other events required by other IFRS.
IFRS 7 (amendment) – Financial instruments: Disclosure
(effective from 1 January 2009). The amendment requires
enhanced disclosures about valuations, methodologies and
the uncertainty associated with fair value measurements. It
also clarifies and enhances existing disclosure requirements
about the nature and extent of liquidity risk.
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